KUALA LUMPUR, March 30 (Bernama) — The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) foresees a recovery in exports with the weak ringgit and stronger growth in the United States.
For the month of January, Malaysian exports dropped 0.6 per cent to RM63.60 billion from RM63.97 billion recorded in the same month in 2014.
The chamber’s Socio-Economic Research Committee Deputy Chairman Peck Boon Soon said this might not be enough to cushion three major domestic headwinds affecting the economy, namely the implementation of the Goods and Services Tax (GST), falling oil prices and a tightening property market.
He was speaking to reporters here today after unveiling the findings of a survey, undertaken by the chamber, on Malaysia’s economic situation in the second half of 2014.
Peck added that there still remained challenges for exports globally, with China heading south while Japan and Euro zone were still recovering.
On the local currency, he said the ringed would continue to under perform as the current fluctuations were quite volatile.
There is a possibility that the local currency might fluctuate between 3.65 to 3.75 against the US Dollar, said Peck.
“The main factor has been the US monetary policy as the United States Federal Reserve is expected to raise interest rates this year which would affect capital outflow from Malaysia,” said Peck who is also RHB Research Institute Economic Research Vice-President.